Business Bulletin

Updated Feb. 27, 1997 2:26 a.m. ET

IT HURTS, but some very small outfits give big raises in order to keep workers.

The National Federation of Independent Business notes that in December the percentage of members saying they had recently raised compensation hit a high of 32%, even as many swore they were doing their all to hold down costs. "They're in denial," says Bill Dunkelberg, the group's economist. Separately, some small businesses report hefty raises. King Paniagua Inc., a New York publishing and promotions firm, at year end raised pay...